Solar firms tap into new markets to ease glut

Sources with knowledge of the price undertaking talks told Xinhua that the two sides were close to agreeing on a minimum price of between 0.55 to 0.57 euros per watt for Chinese solar imports, a deal that would further squeeze profit margins for export-oriented solar panel manufacturers in China.

Instead, these companies are looking at emerging markets where demand is on the rise, albeit slowly. According to research firm NPD Solarbuzz, demand for solar products in the Asia-Pacific region is expected to rise 50 percent from a year ago to 13.5 gigawatts in 2013.

That includes China, where the government is hoping to turn the world's largest PV manufacturing country into a major consumer of such products. The State Council, China's cabinet, vowed last week to increase solar power generating capacity to 35 gigawatts by 2015.

If achieved, the goal would make China the world's largest solar market and significantly ease the production gluts that are pushing many domestic PV firms out of business.

Of the 31 gigawatts installed generating capacity added globally in 2012, 4.5 gigawatts were in China, according to Wang Bohua, secretary-general of China Photovoltaic Industry Alliance.

The State Council also vowed to aid efficient companies in the sector with adequate financing and improve pricing and subsidies to spur solar consumption.

"Our top priority is to expand domestic and other emerging markets," said Qian Jing, global brand director of JinkoSolar.

The company expected its shipments to Europe to slash from 50 percent to 20 percent as it pivots its focus to South Africa, India, Japan and Canada, where Qian said the company has deals with newfound clients.